A levy on new housing developments can be utilized to Victorian initiatives from 2024 to assist pay for social housing, underneath a brand new authorities proposal.
The plan will see a 1.75 per cent contribution imposed on new builds to pay for as much as 17,000 properties that will be used for social housing over a decade.
The proposal can even section out charges for individuals in social housing from 2023.
In accordance with the federal government, builders will fork out 1.75 per cent of the market worth of any new construct with three or extra dwellings or three or extra lot subdivisions in Melbourne, Ballarat, Bendigo and Geelong from July 2024.
Victorian Treasurer Tim Pallas has stated the change will "solely have an effect on about 30 per cent of all residential planning permits issued".
Nonetheless, property consultants, together with the City Growth Institute of Australia (UDIA) chief government Matthew Kandelaars, say the brand new price will fall to house patrons.
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"The federal government will not say that however that's the fact," he stated.
"On a brand new house of $750,000 — which, by the way in which, is effectively beneath the Melbourne median home value — that's about $13,500 in tax."
Opposition Chief Matthew Man has slammed the brand new tax as unfair.
"That is utterly unfair for first house patrons to be stung with extra new taxes from a authorities that's hooked on taxing Victorians," he stated.